Binance returns online after hackers steal $6.3 billion

Customers of Binance pulled $3.64 billion from the platform as it resumed operations after a security breach. This amount represents 2.1% of the exchange's total assets. The platform had been offline since last week when attackers linked to North Korea stole $6.3 billion.

The exchange stated that withdrawals have stabilized after an initial spike. It reported that deposit volumes remained substantial. Binance said it had covered 95% of the stolen assets by purchasing replacement tokens. The remaining 5% consists of less liquid assets that may take longer to source.

Bitcoin prices fell to a six-week low on Friday. Prices recovered slightly over the weekend to trade above $78,000 on Monday. Ether hit a two-month low on Friday before recovering to $2,287. The combined capitalization of the two largest stablecoins, USDT and USDC, dropped by about $1.2 billion since Friday.

Binance has 335 million registered users globally. The company reported $171 billion in total assets under management as of October 28. Ari Redbord, global head of policy at TRM Labs, described the withdrawals as a precautionary reaction rather than capital flight.

The FBI identified the North Korean state-sponsored unit TraderTraitor as responsible for the attack. Law enforcement observed the group converting stolen assets into ether. The agency expects further laundering of the assets through related technology. US blockchain analysis firms TRM Labs and Chainalysis noted that the theft occurred in about 20 minutes and resembled previous large attacks blamed on North Korea.

President Donald Trump told reporters on Saturday that it remained unclear whether North Korea was involved. He stated, "We don't know if it's North Korea, but if it is, we'll talk to North Korea about it." The North Korean mission in Geneva and its embassy in China did not respond to requests for comment.

Binance said it would bear the financial impact of the hack. The company set aside approximately $6.34 billion of its own funds to cover the losses. This money came from its $1 billion Secure Asset Fund for Users, its Futures Insurance Fund, and its corporate treasury. Co-CEO Yi He said the company would use 50% of its SAFU funds and committed to replenishing the fund to about $1 billion.

The exchange is rolling out withdrawals in stages based on user demand. The first phase covered 15 tokens including bitcoin, ether, dogecoin, and some USDC and USDT stablecoins. A spokesperson said the company is prioritizing tokens based on past week data of user demand. The company added that market conditions are stable.

Analysts suggest this could be the biggest financial robbery ever. Attackers stole $2.9 billion worth of cryptocurrency across nearly 150 incidents last year. Yi He warned that new scams have emerged in the days following the hack. She noted that Binance has been made aware of these activities amid the chaos.

Crypto analytics platform DefiLlama reported outflows of $5.81 billion, higher than the $4.36 billion shown earlier. A Binance spokesperson said the initial DefiLlama data did not contain flows deposited to a new hot wallet. The company stated its last update on X is closest to accurate regarding outstanding moves in deposits and withdrawals.